UAE - Today

[JackieTsan]

Hello to all,

I am signed up to several whats'app, telegram groups etc, trying to get the info / updates for UAE.

Where is the situation at today?

Does the offshore (RAK, etc) are been finally taxed? My accountant asked me to do tax registration, which I did...

What about SBR (Small Business Relief)? Does it still exist and it's under 3.8M AED? So anyone that has total income less than 3.8M AED is not paying tax? Is it still valid?

I am still asking around but noone can give a clear answer. What is happening.. Shall we close and move out of this habibian nightmare?

Please suggest.

Thanks to everyone!

 

[bountymounty]

You may use the search field upper right.

Or you can google search the forum:‌


Code:


site:offshorecorptalk.com uae company tax

 

[JackieTsan]

Thank you @bountymounty but nothing recent - updated. I try to get a summary about‌ this. What is the current status.
I read around that offshore are not beeing taxed.‍ In this case why they register for tax?

I'll search again anyway, many thanks!

 

[Clank]

Offshore RAK is not taxed.

 

[Don]

All businesses (including free zone‌ companies) with their first financial year on or after June 1, 2023, must file for‍ corporate tax registration in the UAE in the form and within the timeline set out⁠ by the authority, except in cases where the Minister prescribed otherwise.

Furthermore, any juridical person⁤ incorporating, establishing, or recognizing itself in the UAE on or after 1 March 2024 must⁣ submit a tax registration within three months of the date of incorporation, establishment, or recognition.⁢

https://mailchi.mp/rakicc/qnewsletter-17769849

 

[JackieTsan]

Thank you!
So will all pay tax?
And what about small business relief?
Is it‌ valid? It’s sure that all companies under 3.8m AED can apply for small business relief‍ and pay 0 tax?

Who can answer officially? I can’t believe they are so unorganized⁠ and they don’t announce anything officially when on the same times the companies are running.⁤ It can’t be happening, somewhere must be the answers.
Thank you

 

[Don]

Actually everything is announced by https://mof.gov.ae/united-arb-emirates-ministry-of-finance/

Not all will pay tax.
It depends on the‌ type of income and how much income the company generates.
Charities might be exempt, for‍ example.

E.g., if your RAK offshore company has a permanent establishment abroad and pays tax⁠ abroad then such taxed profits might be exempt from tax in the UAE.

 

[JackieTsan]

Thank you Don!

Are in this link the details of the income??

I’ll check everything‌ thank you very much

 

[JackieTsan]

I read it as much as I can, does not mention anything for small business‌ relief. According to to what it says, as is managed from UAE, then is taxable.‍ The important that might save the issue is the small business relief, is it active?⁠ In Some seminars they said is just a tick and you apply for it, but⁤ is it true ?

Thank you

 

[Clank]

I don’t get it⁢ why an offshore company owned by someone abroad should pay taxes in the UAE?

 

[Don]

Under the UAE CT Law, companies and‍ other juridical persons that are incorporated or otherwise formed or recognised under the laws of⁠ the United Arab Emirates will be considered resident persons.
This covers juridical persons incorporated in⁤ the United Arab Emirates under either mainland legislation or applicable Free Zone regulations.

Foreign companies⁣ and other juridical persons may also be treated as resident persons for CT purposes where⁢ they are effectively managed and controlled in the United Arab Emirates.

 

[JackieTsan]

So, it seems that is time to go for most of us, especially if living‌ in the UAE. Imagine living in UAE and you also have to pay tax for‍ another company you have offshore; pay tax IN UAE as ts managed from there… amazing⁠ ways that countries find to make everyone move away. Wait and see a mass exit⁤ very soon.. Desert!!!

 

[brianK]

What would that mean in reality. You simply have zero activity in the‍ UAE right ?

 

[JackieTsan]

Means you prove you pay taxes in your country‍ of residency for the company, as corporate tax. In this case why one should open⁠ a company in uae and not in the country he lives? If he anyway have⁤ to pay the same tax there? That’s why I say desert soon

 

[Don]

Indeed, it doesn't provide⁤ many advantages and no benefit from a corporate tax perspective.
Sometimes, it might be beneficial⁣ to access certain tax treaties, better regulations, etc.

 

[JackieTsan]

It doesn’t provide ANYTHING positive at all, only more headaches, problems, bureaucracy and‍ tax tax tax. So that’s why I close everything in uae and move somewhere else.⁠ Let them enjoy.

 

[Don]

Right, UAE is definitely not the same jurisdiction it⁠ used to be.

 

[turmpy]

True, what could be an alternative to a UAE company?
You want to move there soon ?‍

 

[Don]

Depends on your situation.
For some, Bahrain could‍ be perfect.. for others, it's not an option.
For some, UAE is still good.

Saudi Arabia could be great for headquarters.

 

[CrazyPanda]

There is a good news from UAE. Finally, as of today, the Economic Substance Regulations‌ (ESR) have been canceled, effective from 2023.